According to the Decision published on Thursday in the Official Gazette, from October 1 the guaranteed minimum gross wage increases from 3,000 to 3,300 lei.

We would like to clarify that until the end of this year there is a provision according to which 200 lei are not taxed.

Thus, an employee who is paid the minimum wage will receive 2,070 lei “on hand” (that is, net), correspondingly 172 lei more than today.

How many minimum wage workers are there in Romania?

Figures from the Ministry of Labor show that in Romania, approximately 1.5 million workers currently receive the guaranteed minimum gross wage, which is approximately 28% of the total workforce.

According to the quoted source, 1,867,588 workers will benefit from the increase of the minimum basic salary by 3,300 lei.

The Ministry of Labor does not say, but it is also said that many entrepreneurs work in their own company in order to maintain micro-enterprise status, which is one of the conditions.

The state did not calculate the impact, that is, the amount it collects as a result of raising the minimum wage is perceived by the business community, in general, as a tax.

Self-Employed – PFAs need to be careful when completing their 2023 Single Income Tax Return, taking into account the new minimum wage

An increase in the minimum wage will make it difficult for authorized individuals to operate independently.

Since they pay taxes in the amount of 6, 12 and 24 salaries, it would be best to do so with a minimum salary of 3,000 lei gross when they file a single return before May 2024.

Why

According to the article of the Fiscal Code, “in a situation where several values ​​of the minimum gross salary for the country, differentiated according to education, seniority or other criteria provided by law (…) are used in one year according to the decision of the Government or other regulatory acts (…) are taken into account the lowest value of the minimum gross wage for the country, unless otherwise provided by law.”

In any case, ANAF will likely return in 2024 to clarify this issue.

The minimum wage in construction, agriculture and food industry in October remains unchanged. An increase is expected from November

As for construction, agriculture and food industry, no decision has been made yet. There will also be an increase given that the Health Care Contribution (CASS) has to be paid, which will significantly reduce their net amount (the law to increase the tax has not yet reached the Official Gazette – the decision of the CCR is awaited).

It will be about 800,000 – 900,000 employees.

In October, the minimum wage in construction remains at 4,000 lei gross (3,150 lei per hand), and in agriculture and food industry it will also be 3,000 lei gross (2,362 lei net).

The government should announce how much they will increase from November.